Japan’s Finance Minister Taro Aso on Monday commented on the strength of the yen and its impact on the Japanese economy.
In his words, “Recent yen gains have various impacts on exports, economic and fiscal policies and Japan’s position is that this isn’t desirable.”
“It’s natural that Japan has means to intervene,” Aso says in parliament in Tokyo.
Recent comments from both Finance Minister and Governor Kuroda have not had any slowdown effect on the currency, even though the strong yen threatens Japanese exports and gradually weakening business confidence after trading at the levels last seen in October 2014 before BOJ increased its quantitative easing program.
The minister said the agreement of G20 doesn’t include the way Japan’s government carries out foreign exchange policy and that G20 nations agree that excessive moves in the markets are undesirable.
The yen traded at 107.35 per dollar at 2:06 p.m. in Tokyo and has appreciated 12 percent in 2016.
The yuan plunged the most in a week on Monday amid speculation the currency will depreciate against the dollar if the Fed increase interest rates in June.
“As long as there is an expectation of yuan depreciating against the dollar, there will be a massive outflow of funds,” said Iris Pang, Hong Kong-based senior economist for greater China with Natixis Asia Ltd. “As long as channels under the capital account are still semi-closed, trade will remain a shadow channel for funds outflows.”
On Saturday, People’s Bank of China said its currency reserves increased by $7.089 billion dollars in April to $3.22 trillion. Only for investors to start moving money out on Monday to protect their gains.
According to China Foreign Exchange Trade System prices, the yuan fell 0.21 percent to 6.5041 a dollar as of 11:17 a.m. in Shanghai. A gauge of dollar strength climbed for the fifth day, bringing its total gains to 1.8 percent.
The offshore yuan traded in Hong Kong rose 0.04 percent to 6.5167.
Ecobank Nigeria Received N50 billion 10-Year Bilateral Subordinated Loan
Ecobank Nigeria announced it has received N50 billion 10-year subordinated Loan.
Adenike Laoye, Group Head, Corporate Communications, Ecobank Nigeria, disclosed this in a statement released through the Nigerian Stock Exchange.
The statement read in part, “The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points.
“The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.”
Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move
Niger Insurance Plc said it is working on a plan to sell off N15 billion worth of real estate and investment property to boost its cash flow and meet the liquidity requirements of the insurance industry.
Mr. Edwin Egbiti, the Managing Director of the company disclosed this during the company’s 2019 annual general meetings held virtually in Lagos recently.
He said, “Subsequent to the requisite approvals of the board on behalf of shareholders, a number of the company’s real estate and investment property valued at N15bn have been put on sale in order to improve liquidity/cash flows, ensure reserve adequacy and improve solvency margins.
“We are encouraged by the progress made so far, and confident that both capital restructuring and recapitalisation efforts will be successful in line with National Insurance Commission’s regulatory timelines.”
It added that Niger Insurance recognised that its people were the company’s most critical assets without whom its goals and plans would remain elusive.
AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt
The Asset Management Corporation of Nigeria has taken over the assets of Dr. John Abebe, the Chief Promoter of Inducon Nigeria Limited over N1.3 billion debt.
According to a statement signed by the Head, Corporate Communications Department, AMCON, Jude Nwauzor, and titled ‘N1.3bn debt: AMCON takes over assets of Inducon Nigeria Limited’ the decision followed the order of Honourable Justice Aikawa of the Federal High Court, Lagos.
“In compliance with the enforcement order, AMCON at the weekend took effective possession of the property situate at Plot12, Block 108, Lekki Peninsula Residential Scheme, Lagos, through its debt recovery agent – Ogunsola Shonibare L.P.
“The court also ordered that the bank accounts of the company and its directors, Dr. John Abebe, Mr Olawole Fatimilehin and Ademola Buraimoh, be frozen pending the final determination of the suit.”
The asset management corporation said the case of Dr. John Abebe and Inducon Nigeria Limited started shortly after the loan was procured by AMCON in 2011 during the first phase of Eligible Bank Asset purchases from the defunct FinBank, Now FCMB.
News3 weeks ago
Heartbroken American Mistress Displays Dangote’s Buttocks in a Viral Video
Crude Oil4 weeks ago
Crude Oil Rose to Almost $52 Per Barrel After Trump Signs Stimulus Package
News3 weeks ago
FCMB Group MD Links to Death of Tunde Thomas, Husband of Married Staff He Fathered Her Kids
Investment2 weeks ago
London Real Estate Company for African Investors Announces its Launch
Finance3 weeks ago
President Buhari Increases Npower Budget by N365 Billion
Technology4 weeks ago
Chinese Government Goes After Jack Ma and Empire
News3 weeks ago
Tunde Thomas: FCMB Commences Review Into Allegations of Unethical Behavior Against MD Nuru
Brands4 weeks ago
Prada’s Profits Drop by $219 Million, Sales in China Up by 60%